GoldMoney’s Top 10 of 2011

2011 was another great year for gold owners across the world, with the metal appreciating by 10.2% in US dollar terms over the course of the year. As GoldMoney’s James Turk notes in his most recent Analysis article for our site, this was the 11th consecutive year of gold price gains. Over the course of the last 11 years, gold has gained an average of 17.7% in dollar terms per year. Given that the central bank and government policies driving gold higher have become even more firmly entrenched in recent months, one would expect this gold price trend to continue in 2012.

Silver price trends last year were more problematic as far as bulls were concerned. Gold’s “little brother” came under significant selling pressure in the latter half of the year, after briefly flirting with the $50 mark at the end of April. Growing fears about problems in the eurozone dampened industrial sentiment significantly, which hurt inflation expectations and thus dampened traders’ appetite for inflation-hedges such as silver. Moreover, the collapse in the silver price in early May following the surge during the winter and early spring spooked a lot of traders and investors. Many remain reluctant to enter positions in silver futures, as indicated by the falling Open Interest in Comex silver futures over the second half of last year.

Overall, silver finished down 9.8% in dollar terms for 2011 – though it’s 11-year average gain per-year is 21.2%, a point that emphasises that while the white metal can be cruel to those who grow complacent about its volatility, it is likely that it will outperform gold in the years ahead. We could even see the gold/silver price ratio – the number of ounces of silver taken to “buy” one ounce of gold – fall into single digits (this ratio currently stands at around 56).

Many of these themes were discussed in content for the Research section of the GoldMoney website over the course of 2011. Listed below are the Top 10 GoldMoney articles and videos of the year, as judged by unique hits per page. We look forward to more hits in 2012, as we will be providing more lucid and penetrating analysis of the precious metal markets, including more interviews with some of the top names in the world of finance.

Anatomy of a short squeeze (April 16)

In his first article for the GoldMoney website, Alasdair Macleod discusses the possibility of a short-squeeze occurring in the gold and silver markets. In his words: “precious metals could be developing into the largest short squeeze in history”. The price implications are obvious.

James Turk’s presentation on the gold price and the US dollar (June 7)

In this presentation at the DEG event in Munich, James Turk discusses why gold is rising against all major currencies and how monetary policy has become politicised, with central banks having abandoned all notions of fiscal conservatism. He warns of the dangers of a hyperinflationary crisis, and also explains why gold should be considered money and not an investment.

Jim Sinclair interviewed by James Turk (August 8 )

James Turk’s interview with legendary “Mr Gold” Jim Sinclair, who has been renowned for his accurate price forecasts over the years and for his prescient warnings about the dangers facing over-indebted economies all over the world. This interview was filmed at the Gold Anti-Trust Action Committee’s (GATA) ‘Gold Rush 2011’ conference in London in early August.

Chris Martenson’s presentation at the Gold & Silver Meeting in Madrid (November 29)

In this video Chris Martenson, economic analyst at chrismartenson.com and author of The Crash Course, explains why he thinks that the coming 20 years are going to look completely unlike the last 20 years. In his presentation he focuses on the so-called three “Es”: Economy, Energy and Environment. He argues that at this point in time it is no longer possible to view either one of those topics separately from one another.

Will governments confiscate gold? (April 23)

In this article, Alasdair Macleod examined the possibility that governments may seek to confiscate gold – as Franklin D. Roosevelt’s administration did in the USA in 1933.

Eric Sprott Interview with James Turk (August 13)

In this video recorded at the GATA conference in London, James Turk interviews Eric Sprott of Sprott Asset Management about developments in precious metals. Sprott is particularly bullish on silver, and thinks that it will turn out to be the “investment of the decade.”

Ned Naylor-Leyland talks to James Turk (September 2)

Ned Naylor-Leyland, of Cheviot Asset Management, and James Turk, Director of the GoldMoney Foundation, talk about how the new Pan Asia Gold Exchange (PAGE) will change the price discovery mechanism for gold. This interview was also recorded at the GATA conference. Those wishing to order DVDs of this event are advised to check the GATA website at www.gata.org.

Money supply explosion will lead to accelerating inflation (December 17)

Alasdair Macleod discusses the hyperbolic trajectory of the gold price, and how central bank efforts to inflate economies with cheap money will lead to accelerating price inflation in the years ahead. This can be seen with reference to the Mises Institute’s “True Money Supply”.

James G. Rickards talks to James Turk (August 22)

Tangent Capital’s James G. Rickards, author of a new book called Currency Wars and James Turk discuss the European sovereign debt crisis and the European Central Bank buying Italian bonds. They talk about the ECB’s role in the crisis and how it is becoming increasingly politicised, in contrast with its predecessor of sorts – the Bundesbank. This interview was recorded at the GATA conference in London.

John Embry discusses gold and silver with James Turk (May 11)

In this video, John Embry – Chief Investment Strategist at the Canadian firm Sprott Asset Management – discusses the bullish case for gold and silver, and how we are in the early stages of a big rise in precious metal prices. This interview was recorded in Jersey, British Channel Islands.

Author: James Hickling

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